Stock Traders Purchase Large Volume of Canadian Pacific Railway Put Options (CP)

Canadian Pacific Railway Ltd (NYSE:CP) (TSE:CP) saw unusually large options trading activity on Wednesday. Traders acquired 2,444 put options on the stock. This represents an increase of 1,321% compared to the average volume of 172 put options.

CP has been the topic of several research analyst reports. Zacks Investment Research cut shares of Canadian Pacific Railway from a “buy” rating to a “hold” rating in a research report on Friday, January 25th. Argus increased their price target on shares of Canadian Pacific Railway from $230.00 to $245.00 and gave the company a “buy” rating in a research report on Tuesday, April 30th. Deutsche Bank reduced their price target on shares of Canadian Pacific Railway from $248.00 to $230.00 and set a “buy” rating on the stock in a research report on Monday, March 18th. Desjardins cut shares of Canadian Pacific Railway from a “buy” rating to a “hold” rating in a research report on Friday, April 12th. Finally, Macquarie reiterated a “buy” rating on shares of Canadian Pacific Railway in a research report on Thursday, March 28th. Four research analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $230.77.

Several large investors have recently added to or reduced their stakes in CP. Bank of New York Mellon Corp boosted its stake in shares of Canadian Pacific Railway by 5.5% during the third quarter. Bank of New York Mellon Corp now owns 460,471 shares of the transportation company’s stock valued at $97,592,000 after purchasing an additional 24,114 shares during the period. Dimensional Fund Advisors LP lifted its stake in Canadian Pacific Railway by 2.1% in the third quarter. Dimensional Fund Advisors LP now owns 43,314 shares of the transportation company’s stock worth $9,180,000 after acquiring an additional 886 shares during the period. AQR Capital Management LLC lifted its stake in Canadian Pacific Railway by 38.1% in the third quarter. AQR Capital Management LLC now owns 34,143 shares of the transportation company’s stock worth $7,217,000 after acquiring an additional 9,419 shares during the period. Nordea Investment Management AB purchased a new stake in Canadian Pacific Railway in the third quarter worth $1,581,000. Finally, Csenge Advisory Group purchased a new stake in Canadian Pacific Railway in the third quarter worth $136,000. 68.58% of the stock is owned by hedge funds and other institutional investors.

Shares of NYSE:CP traded up $0.09 during trading on Friday, reaching $228.72. 352,589 shares of the company traded hands, compared to its average volume of 460,103. The firm has a market cap of $31.83 billion, a PE ratio of 20.42, a price-to-earnings-growth ratio of 1.61 and a beta of 1.17. Canadian Pacific Railway has a 52-week low of $167.48 and a 52-week high of $229.85. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.66 and a current ratio of 0.76.

Canadian Pacific Railway (NYSE:CP) (TSE:CP) last released its quarterly earnings data on Tuesday, April 23rd. The transportation company reported $2.79 earnings per share for the quarter, beating analysts’ consensus estimates of $2.25 by $0.54. The firm had revenue of $1.77 billion during the quarter, compared to analyst estimates of $1.78 billion. Canadian Pacific Railway had a return on equity of 30.52% and a net margin of 27.45%. The business’s quarterly revenue was up 6.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.70 earnings per share. Research analysts predict that Canadian Pacific Railway will post 12.27 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 29th. Stockholders of record on Friday, June 28th will be paid a dividend of $0.6174 per share. This represents a $2.47 dividend on an annualized basis and a dividend yield of 1.08%. The ex-dividend date of this dividend is Thursday, June 27th. This is a positive change from Canadian Pacific Railway’s previous quarterly dividend of $0.49. Canadian Pacific Railway’s dividend payout ratio is 17.41%.

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Canadian Pacific Railway Company Profile

Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; and merchandise freight, such as energy, chemicals and plastics, metals, minerals and consumer, automotive, and forest products.

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